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Setup Swap

An interest rate swap in which the principal increases according to a predetermined schedule. This type of swap might be…

STIR

An abbreviation for short-term interest rate contract. STIR contracts may take the form STIR futures, STIR option, STIR swap, etc.…

Stepped Capped FRN

A type of capped floored FRN in which the capped coupon varies over the life of the note/ bond. An…

Single Call Swap

A callable swap that can be cancelled only on a single pre-determined date in the future. This swap gives the…

Super Flexible Cap

A modified version of the chooser flexible cap in which the total cap notional amount that may be exercised over the…

COBRA

It is an acronym for credit option on Brady bonds. By definition, it is an option whose underlying is the...

Straddle Calendar Spread

An option trading strategy in which a near-month straddle is sold, and a far-month straddle is bought at the same…

Short Put Calendar Spread

A put calendar spread that involves selling far-month put (short put) and buying near-month put (long put) of the same…

Round Trip

The opening and subsequent closing of a position such that the original position is returned to before starting to enter…

RCDS

It stands for recovery lock CDS; a credit default swap (CDS) entails the exchange of a floating recovery amount for…